The Minister of Mineral Resources and Energy, Mr Gwede Mantashe, announces the adjustment of fuel prices based on current local and international factors with effect from the 1st of November 2023.
South Africa’s fuel prices are adjusted monthly, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, e.g., shipping costs.
The main reasons for the fuel price adjustments are due to:
1. Crude oil prices
The average Brent Crude oil price increased from 91.86 US Dollars (USD) to 88.72 USD during the period under review mainly due to:
(a) The rise in global crude oil inventories because of increased production from non-OPEC + producers.
(b) The lifting of sanctions on Venezuela by the US, creating a positive outlook on supply.
(c) The low impact of Israel-Hamas conflict as it has not yet affected flow of crude oil even though it is happening in the Oil rich region of the Middle East.
2. International petroleum product prices
The average international product prices of petrol, diesel, illuminating paraffin followed the decreasing trend of crude oil while LPGas increased due to higher prices of propane and butane during the period under review. These led to lower contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by
207.06 c/l, 115.15 c/l and 105.18 c/l, respectively.
3. Rand/US Dollar exchange rate
The Rand depreciated slightly on average, against the US Dollar (from 19.00 to 19.08 Rand per USD) during the period under review when compared to the previous one. This led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 6.34 c/l, 7.57 c/l and 7.61 c/l, respectively.
4. Implementation of the Slate Levy
The cumulative slate balance on petrol and Diesel at the end of September 2023 had a negative balance of R6.2 billion. Therefore, the slate levy will increase by 21.92 c/l to 52.62 c/l. This will be implemented in the price structure of petrol and diesel with effect from the 1st of November 2023.
Based on current local and international factors, the fuel prices for November 2023 will be adjusted as follows:
- Petrol (both 93 and 95 ULP & LRP): One hundred and seventy-eight cents per litre (178.00 c/l) decrease.
- Diesel (0.05% sulphur): Eighty five point zero eight cents per litre (85.08 c/l) decrease.
- Diesel (0.005% sulphur): Eighty two point zero eight cents per litre (82.08 c/l) decrease.
- Illuminating Paraffin (wholesale): Ninety seven cents per litre (97.00 c/l) decrease.
- SMNRP for IP: One hundred and thirty cents per litre (130.00 c/l) decrease.
- Maximum LPGas Retail Price: One hundred and forty-nine cents per kilogram (149.00 c/kg) increase.
The fuel prices schedule for the different zones will be published on Tuesday, the 31st of October 2023.
Enquiries : mediadesk@dmre.gov.za
Mr Natie Shabangu
E-mail: natie.shabangu@dmre.gov.za
Cel: 073 852 1922
Mr Johannes Mokobane
E-mail: johannes.mokobane@dmre.gov.za
Cell: 082 766 3674
Mr Ernest Mulibana
E-mail: ernest.mulibana@dmre.gov.za
Cell: 082 263 7372
